Dimon: Fed Was Right to Raise Rates But Should Pause and See Impact, More Hikes May Be Needed If Inflation Persists
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Dimon believes the Fed did the right thing raising rates rapidly, but pausing now is prudent to see the impact. He thinks more rate hikes may be needed if inflation persists.
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On housing, Dimon says higher rates are damping demand but prices haven't dropped yet due to excess savings. Lower-income consumers have spent pandemic savings.
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There may be a "sea change" with higher rates for longer due to fiscal stimulus, government spending commitments, and aging demographics. Dimon doesn't see disinflationary forces.
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Dimon is critical of regulations he sees as "barnacles" slowing growth. He wants proper infrastructure investment and less social engineering.
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Geopolitics like Ukraine and U.S.-China relations are a top concern. Dimon urges thinking through potential outcomes and alliances needed to keep the world safe.